Obamacare contractor QSSI to anchor new Columbia office project

Maryland health exchange contractor Quality Software Services Inc. is poised to become the lead office tenant at Costello Construction's mixed-use Little Patuxent Square project, the first major new office construction in downtown Columbia in 13 years.

Developers broke ground on Little Patuxent Square on July 29. Howard County officials at the time said "a rapidly expanding Maryland-based health care technology company" would lease 120,000 square feet of office space at the project near Lake Kittamaqundi

Several sources familiar with the deal have identified the company as QSSI, which has been instrumental in overhauling both the federal HealthCare.gov website and Maryland's health exchange website.

QSSI occupies office space in three Columbia locations and one in Windsor Mill, so a large lease in Columbia would offer the company a chance to put many of its employees under one roof. The area is also challenged by a lack of large blocks of office space, so new construction offers a rare opportunity to create a sizable corporate headquarters.

Costello Construction President David Costello, who is developing the building as LPP Investors LLC, said he could not discuss specific tenants for the new project.

"One person is fairly close, we think, to moving forward, but it would really be premature to report it that way," Costello said when asked about QSSI. "My partner and I have always been committed to building this building with or without a tenant."

LPP Investors acquired the land for the project in 2012. In addition to 135,000 square feet of office space, Costello is also planning 160 apartment units, a 740-space garage and 12,000 square feet of retail. Construction is expected to be completed by July 2016.

QSSI has shown all the signs of a rapidly growing company over the last eight months, announcing in February that the company was adding 50 workers after it won a $14 million contract with the state. In January, the company was awarded a federal contract naming it senior adviser to HealthCare.gov, though the terms of that deal weren't disclosed.